In this work, recycled paper sludge (RPS), composed of non-recyclable fibres, was used as a carbon source for bacterial nanocellulose (BNC) production. The biomass was enzymatically hydrolysed with Cellic CTec 2 to produce a sugar syrup with 45.40 g/L glucose, 1.69 g/L cellobiose and 2.89 g/L xylose. This hydrolysate was used for the optimization of BNC fermentation by static culture, using Komagataeibacter xylinus ATCC 700178, through response surface methodology (RSM). After analysis and validation of the model, a maximum BNC yield (5.69 g/L, dry basis) was obtained using 1.50% m/v RPS hydrolysate, 1.0% v/v ethanol and 1.45% m/v yeast extract/peptone (YE/P). Further, the BNC obtained was used to produce composites. A mixture of an amino-PolyDiMethylSiloxane-based softener, polyethyleneglycol (PEG) 400 and acrylated epoxidized soybean oil (AESO), was incorporated into the BNC membranes through an exhaustion process. The results show that BNC composites with distinct performances can be easily designed by simply varying the polymers percentage contents. This strategy represents a simple approach towards the production of BNC and BNC-based composites.